Malawi Cotton Co. Seeks Progress, not Profits

By Jim.Robinson|October 10, 2011

The goal of the Chinese-owned Malawi Cotton Company’s (MCC) efforts in the African nation is more about developing the cotton industry for the future than turning a profit — despite the fact that the company did post a profit of more than $20 million during the 2010/11 growing season, according to an article posted on the Nyasa Times.

MCC Assistant Manager Xin Jia is optimistic about the Malawian government’s ability to turn cotton into a foreign exchange earner and expects the company’s profits to grow even higher next season. But it is a resource-intensive process, with the company employing 350 full-time field personnel who educate farmers on efficient growing techniques, as well as distribute seed, fertilizer and other inputs to farmers on credit.

In its first year (2008/09), MCC produced 16,000 tonnes of cotton, which has grown to 18,000 tonnes in the most recent year (2010/11). To maximize the return as much as possible, MCC is also conducting trials on producing cooking oil from the cotton seed.

The biggest challenge to the industry’s development, MCC says, is the influx of traders, who contribute nothing to the process but make profits from the farmers’ efforts.